Why doesnt the whole world one single currency? what's the effect of it?

Question

Why doesnt the whole world one single currency? what's the effect of it?

Answer 1

A single world currency means either 2 things depending on how its implemented.

If the world chooses a fiat currency, then all countries have to relinquish monetary control to a World Bank as its central bank. Something that isn't easy when you have poor nations with interest that vary from rich nations.

If the world chooses a hard currency like Gold, then all central banks are dead, and monetary policy is dictated by the spending of individuals around the world. This is good in some respects, but the larger problem in a globalized world is that if you run a negative trade deficit, you'll actually be exporting your currency of Gold. Which at some point will leave your nation without any money to run its economy.

So as it stands right now, a fiat currency which is setup by every nation is the best system, with an unwritten rule that the US Dollar is the world's international currency of trade. Do to the fact that the United States has a stable government, currency, and isn't susceptible to corruption. Along with a powerful military to defend its value.

Answer 2

Let me answer you in a slight different way..... experts say if all the land part of the earth were connected, then earth would have lesser biodiversity....  now think what will happen if all countries have one currency....  

Answer 3

There are problems with this idea. Economic activity can be regional. Some areas might be experiencing strong growth, others not, some areas might reliy more on certain industries, some of which can by cyclical, etc. So having different currencies with differing relative values, allows for the differences in countries economies to settled in the exchange rate.

Answer 4

don't be silly if we done that that the fat hunter gathers would have to do a days work not get rich changing money for the rest of us